Finance Minister Enoch Godongwana has clarified that, despite speculation, he does not intend to confirm a move to a 3% inflation target during the upcoming Medium-Term Budget Policy Statement.

This comes amid the most recent announcement by the South African Reserve Bank (SARB) Monetary Policy Committee that it has a preference to target inflation at 3%.

In an August 1 media release, the Finance Ministry argues that it is well-established that policy-making responsibility in this area resides with the Minister, working with President Cyril Ramaphosa and the rest of Cabinet, who sets the inflation target in consultation with the SARB.

The SARB then operates independently in its pursuit of the inflation target.

“As I emphasised during the Budget presentation, any adjustments to our inflation-targeting framework will follow the established consultation process,” Godongwana asserts.